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Wedding Loan Requirements

Wedding Loans come in 4 main options depending on the bride or groom-to be’s qualifications.
For people with bad credit, or for those who might need less than $1,000 immediately for a wedding emergency, they can easily qualify for an unsecured personal loan.

For those who are in the early stages of wedding planning and know that they will need some financial assistance there are some bank options available to them. If you own your own home, your home’s collateral is the best place to obtain a large sum of money for anything you wait. You can apply for either a home equity loan or line of credit. If you qualify, you can lock in a lower interest rate than on other loan types, and you will have years to pay off your wedding. Many people mistakenly think that their mortgage is only applicable to their house. In reality, you can use the equity in your home like a line of credit to pay for many things: home improvements, a vehicle purchase, even to pay for a wedding.

If you don’t own your home, you may be able to qualify for a loan from a peer-to-peer lending website, but a loan is not guaranteed, and the interest rate can vary dramatically.

Each loan type has different requirements and advantages. Take a look below and see which wedding loan option may be right for you.

A Home Equity Loan (Second Mortgage)

  • Lower interest rate than line of credit or unsecured debt
  • Interest may be Tax-deductible
  • Depending on loan type, property type and other criteria, you may be able to borrow up to $500,000.
  • Requires that you own your own home and it is your primary residence
  • like a credit card, but uses your home as collateral
  • Lower interest rate than line of credit or unsecured debt
  • Interest may be Tax-deductible
  • Use your line of credit by requesting an advance or writing a HELOC check or Bank credit card
  • Depending on loan type, property type and other criteria, you may be able to borrow up to $250,000.
  • Requires that you own your own home and it is your primary residence

Peer-to-peer Lending

  • Apply for a loan online that is funded by individuals
  • No guaranteed approval, or approval timeline
  • Greatly varied interest rates largely dependent on your credit score
  • Closing fees and additional fees may be added onto the loan cost
  • May save you embarrassment of needing a family co-signer
  • Requires some credit history (doesn’t have to be a great credit score)
  • Must show income
  • Must have proven source of income
  • No Collateral needed
  • No application fee
  • Up to 5 years to pay back (depends on lender and type of loan)
  • Don’t need good credit
  • Must be over age 18, most lenders will require you to be at least age 26
  • May qualify up to $25,000
  • Easily qualify for $1,500 or less
  • Fees can be high, especially if you miss a payment or take a long time to pay off the loan
  • Larger loan amounts and longer loan terms may require a co-signer
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